10 Questions For Starting A New Business
Transcribed article based on the video above.
There are 10 questions to consider when you start a new business, I wrote these out a long time ago and I’ve used them as a basis for every business plan I’ve ever written. So let’s go through them together now.
What is the product or service? Be able to describe this in a brief paragraph. What is it’s unique value proposition? Basically, what makes your product or service better than anyone else’s product or service? What is the market opportunity? How many total dollars are spent on your product each year and what does the competition look like? How do you make money? What is your revenue model? Be able to explain this so someone else gets this right away. Who is the management team? Who are the folks that you are working with and what are their backgrounds such that they are uniquely qualified to bring this type of business to life? What is the strategy? What do you want to be when you grow up in five years from now but also where do you want to be in three, six, nine, and twelve months from now. How do you sell or market your product or service, basically, how are we going to get customers. How much capital do you need or intend to raise? What are your expenses going to be over the first six or twelve months of the business and are you going to need to raise any money and if so, how much specifically? What are the projected financials of the company? What do you intend to gross and what are your expenses going to be over the first year, two years, and three years. What’s the valuation of your company? If you were going to sell a portion of your company for a dollar amount, what would that be?
If you consider those 10 questions and write them down, you will have the basis of a great business plan, but also, you will get your business off to a great start.
Jason Nazar is the co-founder and CEO of Docstoc. He’s a frequent author and speaker on small businesses topics. You can read more of his posts here on Docstoc and at his blogJasonnazar.com.